Latest News

Minister says Poland will freeze energy prices for the fourth quarter

Energy Minister Milosz Motyka announced on Friday that the Polish government would extend the price limit for electricity through the fourth quarter. This could eliminate one uncertainty regarding the inflation outlook of the country.

Motyka announced that the power prices would be frozen in the fourth quarter at 500 zlotys ($137) per Megawatt Hour.

The central bank has warned that the electricity price cap in Poland for households will expire at the end of October. This is a factor which could lead to inflation and uncertainty.

Last month, President Karol Nwrocki vetoed legislation that included regulations to extend a price-freeze. The bill was intended to make it easier for onshore wind farm construction.

Motyka stated that the government had prepared a bill to freeze prices for the fourth quarter. The parliament would adopt it by the end September. He said he didn't think that there would be any need to further freeze prices.

He told journalists that he did not believe there was a need to freeze the prices, as he expected energy prices to drop below 500 zlotys a MWh.

Motyka’s statement increased the market's expectations of interest rate reductions within three months. ($1 = 3.6405 zlotys) (Reporting by Marek Strzelecki, writing by Anna Wlodarczak-Semczuk; Editing by Emelia Sithole-Matarise)

(source: Reuters)